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On January 1, 2018, Bringham Company issues $600,000, 10-year, 6%, semi-annual bonds. On the issue date, the market rate is 8%. REQUIRED: SHOW ALL YOUR
On January 1, 2018, Bringham Company issues $600,000, 10-year, 6%, semi-annual bonds. On the issue date, the market rate is 8%. REQUIRED: SHOW ALL YOUR WORK ON YOUR EXCEL FILE 1. Determine the amount of cash received from the Issuance of the Bond. Show the 4 steps to find Cash. 2. Prepare the Journal Entry to record the Issuance of the Bond 3. Prepare the Journal Entry for the first semi-annual Interest Payment AND Amortization of the Bond Discount or Premium using the Straight-Line Method of Amortization 4. Prepare the Journal Entry for the second semi-annual Interest Payment AND Amortization of the Bond Discount or Premium using the Straight-Line Method of Amortization 5. Prepare the Journal Entry for the first semi-annual Interest Payment AND Amortization of the Bond Discount or Premium using the Effective Interest Method of Amortization. 6. Prepare the Journal Entry for the second semi-annual Interest Payment AND Amortization of the Bond Discount or Premium using the Effective Interest Method of Amortization
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